Mr. Fancy purchased a Lawnbus 300, one of the smartest lawn mowers in the market on April 4, Year 4. He spent $30,000 for his lawn mower and has been depreciating it with 6-year useful life and 3000 residual value using straight-line method. On July 7, Year 7, he purchases Lawnbus 400 and trades in his old Lawnbus 300. At that time, the fair value of Lawnbus 400 is $40,000 and the fair value of used Lawnbus 300 is $10,000. And thus, Mr. Fancy only pays $30,000. Lawnbus 400 will be depreciated with 8-year useful life and $4,000 residual value. Mr. Fancy recognizes depreciation once a year at the fiscal year-end, December 31 and half-year depreciation convention has been in place from day 1 of Year 1.

Please prepare TWO journal entries to be made on July 7, Year 7. Please use "Lawnbus 300" and "Lawnbus 400" in your journal entries.